ISLAMABAD: The federal government may increase the prices of petroleum products by up to Rs16.48 per litre with effect from August 16, according to the estimates of oil refineries.

In a press conference on Saturday, Minister of State for Energy (Petroleum Division) Musaddiq Malik said that the Oil and Gas Regulatory Authority (Ogra) determines the price of petroleum products on the basis of last 15 days average and the exchange rate for letter of credits (LCs) is applicable 16 days back.

“The impact of reduction of oil prices is usually transferred after 15 days, not immediately,” he explained.

Sources in the Ogra disclosed to Business Recorder that based on current rate of petroleum levy (PL), the estimated ex-depot price of petrol may climb by Rs16.53 per litre, high speed diesel (HSD) by Rs6.80 per litre. However, price of kerosene oil (SKO) may reduce by Rs1.61 per litre and light diesel oil (LDO) will go up by Rs0.69 per litre.

The prices of petrol and HSD will also add Rs7 per litre petroleum dealers’ margin and Rs3.68 per litre OMC margin. The Economic Coordination Committee (ECC) approved the increased margin of petroleum dealers.

This estimated price would take the price of petrol up from Rs227.19 to Rs243.67 per litre, HSD from Rs244.95 to Rs251.75 litre, SKO from Rs201.07 to Rs199.46 per litre, and LDO from Rs191.32 to Rs192.01 per litre.

The OGRA will send the summary on Monday to the Finance Division seeking a raise in the petroleum prices with effect from August 16.

POL products’ prices further jacked up

As usual, the final decision in this regard will be taken by Prime Minister Shehbaz Sharif.

At present, the PL on petrol stands at Rs20 per litre and Rs10 per litre on HSD, SKO and LDO, while rates of sales tax are zero.

The National Assembly has approved a rise in the maximum limit of PL from Rs30 per litre to Rs50 per litre to achieve the budgetary target of Rs750 billion in the Finance Bill 2022-23.

Copyright Business Recorder, 2022